CNBC’s Nightly Business Report discusses the Data Center REIT sector, which sits at the crossroads between technology and real estate. Data centers present investors with unique analytical challenges, including risk assessment of technology-driven economic obsolescence. However, there is opportunity for those investors willing to undertake the analytical effort of understanding the sector.
Video: Answering the question of whether one should sign a tenant rep agreement with a broker to lease office space
The host of The Commercial Real Estate show answers the question of whether one should sign a tenant rep agreement with a broker to lease office space. His answer, which we concur with, it a resounding yes! Tenant reps can provide not only information about the market and available spaces, a good tenant rep can help guide a tenant through the negotiation process.
Information on our tenant representation services can be found here,
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Video: Fitch Ratings Managing Director Steven Marks Discusses the Performance of and Outlook for Office REITs
Steven Marks, Managing Director at Fitch Ratings, appears on The Commercial Real Estate Show to talk about office real estate investment trusts and their outlook.
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Video answers the question: Can an agent tell me what my commercial property is worth?
In this quick video from The Commercial Real Estate Show, host Michael Bull answers a common question; “Can an agent tell me what my commercial property is worth?” His answer is yes and no, yes if it is more of an indication of value, but no if it is to provide a loan or for a more formal valuation. I would note that I am asked about and opine on value on a regular basis, but always note it as only an opinion of value. Nevertheless, commercial brokers generally have a good idea of value, and given that they tend to provide these opinions at little or no cost, they can be a great first step in considering value and listing price. Anyone with a real estate license in Florida should be aware that an appraisal can only be performed by a qualified appraiser.
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Video: The Chief Economist of Reis Explains Cap Rate Methodology
In this video an overview of the Reis Cap Rates methodology is presented by Dr. Victor Calanog, its Chief Economist. Cap rates are a measure of a property’s investment potential, independent of a specific buyer. Investors, lenders, and appraisers use cap rates by Reis and others to estimate the appropriate purchase price for different types of income producing properties, including retail, industrial, office, and multifamily properties.
Reis notes that it offers three different cap rates per property in its Sales Comps module:
– An Estimate of Going-in Cap Rate
– 12-Month Rolling/Trailing Metro Cap Rate
– Reported Cap Rate
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Video: Are letters of intent (LOIs) binding?
In this short video, The Commercial Real Estate Show host Michael Bull discusses whether letters of intent are binding. Related to this, readers might be interested in the language in the Florida Realtors Commercial Contract (CC-4), a form often used for commercial property transactions. Within this Florida CC-4 form is an optional provision for a due diligence period that is often selected and that readers will want to familiarize themselves with, whether on the buy side or sell side of a commercial property sale.
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Video: CoStar’s Director of Office Property Research Provides an Update: Office Construction vs. Norms; Rent Growth Year Over Year; Vacancy by City; More…
Walter Page, Director of Office Property Research for CoStar, provides and update on the Office Market in this video from The Commercial Real Estate Show. This update on the office property market includes performance, construction, and supply.
Walter presents and discusses a chart of new office property construction versus norms by city, a chart – grouped as to whether new construction is less or more than historical norms and then sorted by the proportion of new construction to existing square footage – that in which Miami sits right in the middle. Eyeballing it, Miami’s new office construction appears to be a bit under 20% higher than historical norms.
He then reviews a chart on rent growth year over year for prime/suburban office properties versus secondary business districts, noting a narrowing spread in rent growth rates between them.
A third chart reviewed is newer office building property (less than 10 years old) vacancy rates by city, illustrating where this metric lies as under construction supply is considered, i.e. where vacancy rates would be if all this new office property was available now. Of 25 markets represented, Miami (also see Miami office property trend charts) is the third highest when available under construction office properties are considered, i.e. the third worst. Of course, what this chart doesn’t take into account is how growth in Miami may cut into this soon to be available supply, but it is an interesting metric to note, regardless.
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Video: John Bejjani of Green Street Takes on Topic of Current Commercial Real Estate Valuations
In an interview with Allen Kenney of Reit.com John Bejjani, an analyst with Green Street Advisors, a company with over 100 employees including more than 40 research professionals that provides actionable intelligence for commercial real estate investors, discusses the commercial real estate market. Highlights include:
- Cash flow and operating income growth remains healthy
- Cap rate outlook is mixed
- Overall real estate seems fairly valued
- Apartments (multifamily) and malls are relatively cheap
- Industrial and retail strip centers are relatively expensive
- Office properties are the most expensive
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Video: Should one agree to personally guarantee a lease?
The Commercial Real Estate Show addresses the question of whether one should personally guarantee a lease for his or her company.
The answer is no, if you can get away with it, as there is no benefit to a tenant. However, practically speaking, most landlords will require a personal guarantee for a small business. That being said, it never hurts to ask, and if you’re truly willing to walk otherwise, you might be pleasantly surprised. If you don’t ask, you don’t get.
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Video: Jay Parsons of RealPage Provides a Multifamily Market Update and Forecast for 2017
Jay Parsons, Vice President for MPF Research at RealPage, goes on The Commercial Real Estate Show to provide an update on the multifamily property market and to make forecasts about multifamily property investments for 2017. Jay Parsons oversees the research, analysis and services teams at RealPage. He has written commentary pieces for numerous publications, including GlobeSt, Multifamily Executive, the Mortgage Bankers Association, American Banker, and Multihousing Pro. Jay is a frequent speaker on various topics from housing economics to multifamily market conditions to demographic trends at industry conferences and events around the United States.
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Video: RentCafe Discusses LEED Certified Multifamily Properties
Nadia Balint of RentCafe comes on The Commercial Real Estate Show with host Michael Bull to discuss sustainability in multifamily properties, including LEED certification and some of the top cities for green apartments. Nadia Balint is an online content developer and creative writer for RENTCafé, a nationwide internet listing service (ILS) that enables renters to find apartments and houses available for rent throughout the United States of America. The company is part of Yardi Systems, which has served real estate and property management professionals for over 25 years.
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Video: Multifamily Market Trends from RealPage’s Jay Parsons
Jay Parsons, Vice President for MPF Research at RealPage, goes on The Commercial Real Estate Show to discuss trends in the multifamily property market, including performance, capitalization rates (cap rates), and rent levels. Jay Parsons oversees the research, analysis and services teams at RealPage. He has written commentary pieces for numerous publications, including GlobeSt, Multifamily Executive, the Mortgage Bankers Association, American Banker, and Multihousing Pro. Jay is a frequent speaker on various topics from housing economics to multifamily market conditions to demographic trends at industry conferences and events around the United States.
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Video: What website should one use to sell commercial property?
The Commercial Real Estate Show opines on which websites one should use to sell commercial real estate. Listening to it, I’m not sure what his answer is, so I’ll opine.
First, there is the question of how publicly to offer a property to begin with. At one extreme a property is offered privately, with disclosures related to the property subject to signing of an NDA. At the other extreme is a publicly listed property. In this post I’ll concentrate on the latter.
For most commercial properties, certainly those in the $2 million to $5 million mid-market in which we are active, it is clear to us, from experience, that being listed in what we consider to be the 3 primary platforms is important. One of these is MLS, which many commercial brokers avoid. Anecdotally, we find that MLS is at least as significant of a driver of leads to purchase mid-market commercial property. Thus, we believe placing a property on MLS provides value for customers that have listed with us. We do note, however, that as the price rises, the usefulness of an MLS listing seems to wane, particularly for properties over $10 million.
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